IDX Calls 10 Percent Of Companies Queue For IPO From MSMEs

Indonesia Stock Exchange (Photo: Doc. Antara)

JAKARTA - The Indonesia Stock Exchange (IDX) said as many as 10 percent of companies lining up to hold an Initial Public Offering (IPO) this year are the Micro, Small and Medium Enterprises (MSMEs) sector.

Director of Corporate Assessment of the Indonesia Stock Exchange (IDX) I Gede Nyoman Yetna explained, as many as 10 percent of the MSME sector queuing for the IPO is a company with an asset value of less than IDR 50 billion.

The remaining 85-90 percent that queues for IPOs are still dominated by companies with medium-scale assets with an asset value of between IDR 50 billion to IDR 250 billion, and a large scale with assets above IDR 250 billion.

"Indeed, it is more or less around 85-90 percent medium and large, the remaining small-scale MSMEs and in acceleration are around 10 percent," he said, quoting Antara.

Seeing this phenomenon, his party has provided acceleration boards as an effort to encourage more MSMEs to organize IPOs, as a form of fundraising to advance to class and expand.

What we put on the acceleration board is not just the small size. We don't see that, but how this company is different from the others, meaning, there are innovations, there are things we see that there is growth opportunity going forward," said Nyoman.

On the same occasion, Minister of Cooperatives and SMEs Teten Masduki, who was also present at the Main Hall IDX, said that so far 33 MSMEs have held IPOs out of a total of 864 companies that have been listed on the stock exchange.

Through the involvement of the IDX as an incubator, his party is optimistic that 100 MSMEs will be able to become a public company faster in line with stable national economic growth.

"For example, meatball stalls, warteg (warung Hagal), other businesses that we can aggregate, so that if the minimum value is IDR 50 billion, I think it can, but indeed the involvement of incubators needs to be involved," said Teten.

As of May 26, 2023, the IDX noted that there were 40 companies that recorded their initial shares in the Indonesian capital market, with funds raised reaching IDR 32.7 trillion.